Tyre stocks face selling pressure on lower FY25 volume growth forecast; MRF, Apollo Tyres, CEAT down 3-4%
Majority of the tyre stocks faced selling pressure during Thursday’s session on lower FY25 domestic tyre volume growth forecast. According to leading rating agency ICRA, India’s domestic tyre volume growth is expected to moderate to 4-6 per cent in FY2025 from an estimated 6-8 per cent in FY2024 on the back of elevated base and subdued growth in the commercial vehicle (CV) segment.
However, ICRA anticipates domestic demand from original equipment manufacturers (OEMs) in certain consumer segments like passenger vehicles (PV) and two-wheeler as well as replacement to remain healthy, supporting overall tyre volume expansion in FY2025.
While revenues would expand by 5-7 per cent in FY2025, high natural rubber prices and increasing crude prices are likely to moderate the tyre industry’s margins by 200-300 basis points (bps) in FY2025.
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Published: 09 May 2024, 06:10 PM IST